SolarEdge Technologies Stock Surges Mixed Q1 Results, Strong Q2 Outlook

  • SolarEdge Technologies Inc SEDG reported first-quarter revenue growth of 61.6% year-over-year to $655.08 million, beating the consensus of $636.02 million.
  • Adjusted EPS improved to $1.20 from $0.98 in 1Q21, missing the consensus of $1.27.
  • Solar segment revenue was $608.0 million (+62% Y/Y), and the gross margin was 30.2%, down from 39.7% in the same quarter last year.
  • The gross margin declined by 723 bps to 27.3%. The operating income increased by 15.3% Y/Y to $50.86 million, and the margin contracted 312 bps to 7.8%.
  • The adjusted gross margin was 28.4%, down 811 bps, and the adjusted operating margin was 13.3%, down 442 bps.
  • SolarEdge net cash used in operating activities totaled $(162.99) million, compared to cash generated of $24.08 million a year ago.
  • As of March 31, 2022, cash, cash equivalents, bank deposits, restricted bank deposit, and marketable securities totaled $979 million.
  • 2Q22 Outlook: SolarEdge Technologies expects Revenues of $710 million to $740 million versus a consensus of $687.12 million. It expects a Non-GAAP gross margin of 26% to 29%.
  • It expects revenues from the solar segment of $660 million to $690 million and a Gross margin of 28% to 31%.
  • Price Action: SEDG shares are trading higher by 4.09% at $265.76 during the post-market session on Monday.
Posted In: Briefswhy it's movingEarningsNewsGuidanceMoversTrading Ideas